The S&P 500 Posted Positive Returns in 40 of the Last 50 Years

Historical market data reveals the frequency of positive years and the magnitude of gains versus losses

The Details

Despite the 80% positive rate, the 10 negative years occurred in clusters — 7 of them happened during just two periods: 2000-2002 and 2007-2008. This clustering means investors typically experience several good years followed by concentrated periods of losses rather than evenly distributed down years.

What this means for you

Retirement decisions compound — getting one of these details wrong can cost tens of thousands of dollars over a retirement. The good news: most of these mistakes are completely avoidable if you understand how the rule actually works.

Next step

If you want to see how this applies to your specific situation, take the free Retire Ready Score — a 2-minute assessment that scores your current plan across income, taxes, healthcare, and protection.